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    to   the   Hospital,   including   administrative   and

    professional support from academic units, housestaff,

    and facilities expenses, and the University shall

    continue  to  provide  support  to  the   Hospital  for

    certain educational functions which are carried out

    within the Hospital and for any patient care programs

    designated by the State.



    The  Board   of  Directors   shall  recommend   to  the

    Chancellor on the annual, biennial, and other planned

    operating and capital budgets for the Hospital.



    The Controller/Treasurer of the University of Kentucky

    shall be the Controller/Treasurer of the Hospital.

    Accounting will be conducted in compliance with KRS

    Chapter 164A. The University Board of Trustees will

    engage an audit firm to conduct an annual audit of the

    Hospital.



2.   Purchasing



    All expenditures and purchases of the Hospital will be

    made in accordance with the principles defined in the

    Kentucky Modified Purchasing Act, KRS 164A.575, under

    the direction of the University Director of Purchasing.